Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Gold–Ore Resources Ltd. (TSX:GOZ) today released Second Quarter (ending May 31, 2011) production results for the 100% owned Bjorkdal Gold Mine in Sweden. During the second quarter the mine produced 11,131 ounces of gold, an increase of 11% over the first quarter; during the month of May the mine set a new monthly gold production record of 4,208 ounces. The Company projects 2011 gold production at 44,000 to 46,000 ounces.
Second Quarter 2011 Production
| Q2 2011 | ||
| Tonnes processed | 306,281 | |
| Daily throughput – tonnes | 3,329 | |
| Head grade – grams/tonne | 1.27 | |
| Gold recovered – ounces | 11,131 | |
| – kilograms | 346.2 | |
| Average plant recovery | 88.6% |
During the second quarter, the underground unit at Bjorkdal provided 55% of the ore feed for the plant, or 1,824 tonnes per day. The remaining ore was sourced from the open pit. The near term target is to increase the underground capacity to 2,000 tonnes per day, thereby increasing gold production for the second half of 2011.
The Bjorkdal plant was shut down for scheduled maintenance for 1.5 days in mid-April and, during this period, a new electric motor was installed on a grinding mill. The implementation of this larger capacity motor resulted in an increased plant throughput of 5-6%. Prior to the upgrade, the plant capacity was rated at 3,200 tonnes per day. During May the plant processed an average of 3,408 tonnes per day and the plan is to continue at this rate.
About Gold-Ore
Gold-Ore Resources is a gold producing company focused in the low political risk jurisdiction of Sweden. The company’s primary asset is the Bjorkdal Gold Mine, which has produced 1,030,000 ounces in the last 23 years of operation. The estimated gold resources from underground and open pit at Bjorkdal are; measured 188,000 ounces (2.3 million tonnes grading 2.56 g/t); and indicated 732,000 ounce (14.2 million tonnes grading 1.6 g/t). Drilling is expanding the resources indicating a long mine life at current gold prices. The company has a strong balance sheet, generates significant cash flow from gold sales, and remains un-hedged. Gold-Ore has maintained a good capital structure, with only 85.0 million shares issued (90.9 million fully diluted).
Image by Gold-Ore Resources, of the Bjorkdal Gold Mine in Sweden.
